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Zimbabwe expands steel industry as global plants shut down
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While steel plants worldwide face closures, Zimbabwe is making significant strides in expanding its steel industry. President Emmerson Mnangagwa has officiated at the groundbreaking ceremony for the US$3.6 billion Palm River Energy Metallurgical Special Economic Zone in Beitbridge, a project poised to boost the country's mining, energy, and industrial sectors.
Countries such as South Africa are struggling to keep their steel plants operational. ArcelorMittal, one of the world's largest steel producers, is in talks with the South African government to prevent the shutdown of its Vereeniging and Saldanha steel plants. The global steel industry has been hit by high energy costs, declining demand, and economic uncertainties.
In contrast, Zimbabwe is attracting major investments in steel production. The Palm River Energy project will incorporate mining, power generation, coke production, and steel manufacturing. It is expected to transform the Matabeleland region into an industrial hub, boosting employment and economic growth.
President Mnangagwa, accompanied by Vice Presidents Constantino Chiwenga and Kembo Mohadi, led the ceremony alongside key government officials, including Finance Minister Mthuli Ncube, Mines Minister Winston Chitando, and Chinese embassy representatives. Mining sector stakeholders and Beitbridge community leaders also attended the event.
The 5,163-hectare industrial park will be developed in five phases over 12 years, with an initial investment of US$237 million for the first phase, set to be completed in two years. The project will ultimately produce stainless steel, strengthening Zimbabwe's mining and energy sectors.
President Mnangagwa emphasized that the investment highlights growing confidence in his administration's economic policies. In 2018, he declared Beitbridge a Special Economic Zone (SEZ) to attract foreign direct investment and improve local business competitiveness. The SEZ model is central to Zimbabwe's strategy to stimulate industrial growth.
As global steel plants struggle, Zimbabwe's commitment to value addition, industrialization, and energy production is positioning the country as a key player in the steel sector. The Palm River Energy project is expected to enhance export potential, create jobs, and contribute to economic transformation in the region.
Countries such as South Africa are struggling to keep their steel plants operational. ArcelorMittal, one of the world's largest steel producers, is in talks with the South African government to prevent the shutdown of its Vereeniging and Saldanha steel plants. The global steel industry has been hit by high energy costs, declining demand, and economic uncertainties.
In contrast, Zimbabwe is attracting major investments in steel production. The Palm River Energy project will incorporate mining, power generation, coke production, and steel manufacturing. It is expected to transform the Matabeleland region into an industrial hub, boosting employment and economic growth.
President Mnangagwa, accompanied by Vice Presidents Constantino Chiwenga and Kembo Mohadi, led the ceremony alongside key government officials, including Finance Minister Mthuli Ncube, Mines Minister Winston Chitando, and Chinese embassy representatives. Mining sector stakeholders and Beitbridge community leaders also attended the event.
The 5,163-hectare industrial park will be developed in five phases over 12 years, with an initial investment of US$237 million for the first phase, set to be completed in two years. The project will ultimately produce stainless steel, strengthening Zimbabwe's mining and energy sectors.
President Mnangagwa emphasized that the investment highlights growing confidence in his administration's economic policies. In 2018, he declared Beitbridge a Special Economic Zone (SEZ) to attract foreign direct investment and improve local business competitiveness. The SEZ model is central to Zimbabwe's strategy to stimulate industrial growth.
As global steel plants struggle, Zimbabwe's commitment to value addition, industrialization, and energy production is positioning the country as a key player in the steel sector. The Palm River Energy project is expected to enhance export potential, create jobs, and contribute to economic transformation in the region.
Source - online
